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Practice_Midterm 2

# Practice_Midterm 2 - University of Toledo BUAD 2050 Fall...

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University of Toledo BUAD 2050 Fall 2011 Practice Exam Midterm Exam 2 1 1. Calhoun Company makes two different products, Product X and Product Y in departments named after the products. For example, Product X is made in Department X. The rent paid on the manufacturing facility would most likely be allocated on the basis of: A) direct labor hours. B) machine hours. C) square footage. D) units sold. 2. JP Manufacturing Co. produces two products. The products' identified costs are as follows: The company's overhead costs of \$68,000 are allocated based on direct material cost. Assume 4,000 units of product A are produced and 5,000 units of Product B are produced. What is the total amount of production costs that will be accumulated for Product A? 3. Which of the following is incorrect regarding a job-order cost system? 4. Joint products A and B emerge from common processing that costs \$2000 and yields 300 units of Product A and 100 units of Product B. Product A can be sold as-is for \$5 per unit or processed further and sold later for \$12 per unit. Product B can be sold as-is for \$25 per unit or processed further and sold later for \$30 per unit. The additional per unit processing costs for Product A and B total \$5 and \$8, respectively. How much joint costs will be assigned to Product B if joint costs are allocated on the basis of units produced? Product A Product B Direct Materials \$18,000 \$16,000 Direct Labor \$10,000 \$28,000

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University of Toledo BUAD 2050 Fall 2011 Practice Exam Midterm Exam 2 2 5. Joint products A and B emerge from common processing that costs \$2000 and yields 300 units of Product A and 100 units of Product B. Product A can be sold as-is for \$5 per unit or processed further and sold later for \$12 per unit. Product B can be sold as-is for \$25 per unit or processed further and sold later for \$30 per unit. The additional per unit processing costs for Product A and B total \$5 and \$8, respectively. How much joint costs will be assigned to Product A if joint costs are allocated on the basis of relative sales? A) \$ 1,080 B) \$ 500 C) \$750 D) \$1,250
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Practice_Midterm 2 - University of Toledo BUAD 2050 Fall...

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